Key Takeaways

• A transfer-on-death (TOD) deed lets a homeowner name who inherits certain residential property at death — without probate.
• It applies to one-to-four-unit residential property (and certain condos and small agricultural parcels), not commercial real estate.
• It must be signed before a notary, witnessed by two people, and recorded within 60 days of signing.
• It’s revocable anytime during the owner’s life and only takes effect at death.
• The TOD deed law has a scheduled expiration date and specific limits, so it’s worth understanding before relying on it.

What a Transfer-on-Death Deed Does

A transfer-on-death deed — sometimes called a beneficiary deed — lets you name a person to inherit your home when you die, with the property passing to them outside probate. During your lifetime nothing changes: you keep full ownership and control, you can sell or refinance, and you can change your mind. The deed only does its work at your death, transferring the property to the beneficiary you named.

It’s California’s attempt to give homeowners a simple, trust-free way to keep their most valuable asset out of probate. For the right situation, it’s genuinely useful. But it comes with real limits and a few traps, and it isn’t always the best tool even when it’s available.

What Property Qualifies

The TOD deed is limited to residential property of a specific type:

• A home with one to four dwelling units
• A condominium unit
• Certain agricultural parcels of 40 acres or less with a single-family residence

It does not work for larger apartment buildings, commercial property, or bare land outside those limits. If your property doesn’t fit, a living trust is usually the alternative for avoiding probate on real estate.

The Execution Rules — Easy to Get Wrong

A TOD deed only works if it’s executed exactly right, and the formalities are stricter than many people realize:

• It must be signed and dated by the owner.
• It must be acknowledged before a notary.
• It must be signed by two witnesses who are present at the same time (a requirement added to strengthen the deed against fraud and undue influence).
• It must be recorded with the county recorder within 60 days of the date it’s signed.

Miss the recording deadline, skip the witnesses, or fill it out incorrectly, and the deed may be void — meaning the property could end up in probate after all, which is the exact outcome you were trying to avoid. Precision matters here.

A TOD deed that’s executed wrong is worse than none at all — it creates false confidence. If you want to be sure yours is valid, Bay Legal can help. For guidance on your specific situation, call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

Revoking or Changing It

One of the TOD deed’s strengths is flexibility. While you’re alive, you can:

• Revoke it by recording a formal revocation,
• Replace it by recording a new TOD deed (the later one controls), or
• Sell or transfer the property, which simply leaves nothing for the deed to pass.

Because it’s freely revocable and takes effect only at death, naming a beneficiary doesn’t tie your hands. The beneficiary has no rights and no say while you’re living.

The Trade-Offs and Limits

The TOD deed is simple, but simplicity cuts both ways. A few things to weigh:

• It has a scheduled sunset. The TOD deed statute carries an expiration date set by the Legislature, which has revisited and extended it before. A deed properly recorded while the law is in effect is generally honored, but the availability of new deeds depends on the law remaining in force — confirm the current status before relying on it.
• It only covers the named property. It does nothing for your other assets, so it’s rarely a complete plan on its own.
• It can complicate things with multiple beneficiaries or if a beneficiary dies before you.
• Creditor and Medi-Cal questions can arise after death. Property passing by TOD deed may still be reachable for certain claims — a reason to get advice if that’s a concern.
• It doesn’t help if you become incapacitated — unlike a trust, it has no mechanism for managing the property during your life if you can’t.

For many people with just a home to pass, the TOD deed is a reasonable, low-cost option. For anyone with a larger or more complex estate, a living trust usually does more.

Not sure whether a TOD deed or a trust fits your situation? The right answer depends on what else you own and your goals. For guidance on your specific situation, call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

How This Fits With Other Options

The TOD deed is one of several ways to keep property out of probate. A living trust is more comprehensive and handles incapacity. Joint tenancy passes property to a co-owner automatically. And for estates already facing a death, simplified procedures may apply. See our how to avoid probate in California hub for the full picture.

Frequently Asked Questions

What is a transfer-on-death deed in California?

It’s a recorded deed that names who inherits certain residential property at the owner’s death, passing the property outside probate. The owner keeps full control during life and can revoke it anytime.

What property can a California TOD deed be used for?

Residential property with one to four units, a condominium unit, or certain small agricultural parcels with a single-family home. It doesn’t apply to commercial property or larger buildings.

Does a TOD deed have to be recorded?

Yes. It must be signed before a notary, witnessed by two people, and recorded with the county recorder within 60 days of signing, or it isn’t effective.

Can you revoke a transfer-on-death deed?

Yes, anytime during your life — by recording a revocation, recording a new TOD deed, or transferring the property. The beneficiary has no rights while you’re alive.

Is a TOD deed better than a living trust?

It’s simpler and cheaper but far more limited. It covers only the named property, doesn’t address incapacity, and has a statutory expiration. A living trust is usually better for larger or more complex estates.